Transcript DRUG FUND city county 2012 evidence handouts

MANAGING THE DRUG
FUND
Municipal Technical Advisory Service
County Technical Assistance Service
Rex Barton
Terry Hazard
The “Drug Fund”
• The “drug fund” is a special revenue
account.
– Similar to solid waste fund account or
street aid fund account.
– It is under the control of the city
recorder/trustee !!
• Confidential expenditures are made from a
separate account (confidential account).
Sources of Revenue
• Fines from drug offenses
– 50% of the fine goes to the drug fund (special
revenue account).
– 50% of the fine goes to the General Fund.
• Forfeited cash and the proceeds from the
sale of forfeited property.
• Donations.
• Appropriations from governing body.
FINES
FORFEITED CASH
AND THE PROCEEDS
FROM THE SALE
OF FORFEITED PROPERTY
50%
DONATIONS
APPROPRIATIONS
SPECIAL REVENUE
ACCOUNT
(City Recorder/Trustee)
50%
GENERAL FUND
**NOT the proceeds from the
sale of DUI and DRL vehicles
LEGITIMATE EXPENDITURES
General Categories
• Local Drug Treatment Programs
– Drug Court treatment programs
• Drug Education Programs
• Drug Enforcement
– Operational expenses
– Confidential expenses
• Non-recurring General Law Enforcement
Expenditures
• Automated Fingerprint Machines
DRUG ENFORCEMENT
• Operational
– Automobiles for Drug Investigators
– Maintenance and Operational Expenditures
for drug officers automobile
– Telephone Charges, including cellular
charges
– Office Supplies and Office Equipment for Drug
Investigation Officers
– Drug Identification Kits For Drug Investigators
and Patrol officers
DRUG ENFORCEMENT (cont)
• Operational (cont)
– Drug Enforcement Training
– Drug Dogs and Their Maintenance, Including
Feed and Veterinary Service
• General Drug Enforcement Expenditures
Are Not Confidential
– Must follow city/county purchasing guidelines
NON-RECURRING GENERAL
LAW ENFORCEMENT
• Not Drug Investigation related
• Expenditures:
– Patrol or administrative vehicles
– Blue lights, sirens, radios, and radar units
– Video cameras
– Handguns, but not ammunition
– Fax machine or copier
NON-RECURRING GENERAL
LAW ENFORCEMENT (cont)
• Expenditures (cont)
– Patrol Dogs (non-drug dogs), but not feed or
veterinary services
• Treat dual trained dogs as drug dogs
– Computers
– Original software purchase, but not
maintenance or upgrades
NON-RECURRING GENERAL
LAW ENFORCEMENT (cont)
•
•
•
•
Body armor
Shotguns and rifles
Tasers
Cell phones, including smart phones
– But not the monthly bills
AUTOMATED FINGERPRINT
MACHINES
• Must set aside 20% of drug fund revenues
until machine is purchased or have an
agreement with another agency (having a
machine)
• After purchase or agreement, may use
20% of revenues to pay for line charges
and maintenance
Residual Value
• When items purchased with drug funds
are sold, the funds received from the sale
must go back to the drug fund
DONATIONS
• Any charitable donation must follow state
law
• Cities
– TCA 6-54-111
• Counties
– TCA 5-9-109
DONATIONS,
Generally speaking
• Must be a 501(c) (3) (4) or (6)
organizations
• Must provide financial reports, including
audit, to government
• Funds for other non-profits, other than
charitable organizations, may be made
once notices have been published in a
newspaper of general circulation,
specifying amount and purpose
• Must be approved by governing body
DONATIONS,
Generally speaking
• Any donation must meet the criteria of one
of the qualifying expenditures categories
– Drug treatment
– Drug education
– Drug enforcement
– Non-recurring general law enforcement
expenditures
DONATIONS,
Generally speaking
• Sponsoring a sports team is NOT drug
education
– Putting “Just say no to drugs,” on a jersey
does not justify the expenditure
• Ask yourself, “What is the true purpose of
the expenditure?”
• If it walks like a duck……….
SPECIAL REVENUE
ACCOUNT
(City Recorder/Trustee)
Expenditures
Must Follow
Purchasing Guidelines
CONFIDENTIAL
ACCOUNT
Expenditures
Must Follow
Comptroller’s
Guidelines
The municipal “Drug Fund”, by
statute, is under the control of
the City Recorder whether it
has a separate checking
account or not.
County Trustee for counties
The “Confidential Checking Account”,
authorized by the Comptroller in the
Procedures for Handling Cash
Transactions Related to Undercover
Investigative Operations of County
and Municipal Drug Enforcement
Programs, is under the control of the
Police Chief or Sheriff.
Purchasing Procedures
The Drug Fund, like any other fund of
the municipality or county, is
required to comply with municipal
or county purchasing procedures.
Purchasing Procedures
• Purchasing procedures may be found in:
– Municipal Charter
– Purchasing Ordinances
• If those are silent on the issue, you fall
under the 1983 Municipal Purchasing
Law.
Purchasing Procedures
• Purchasing procedures for counties may
be found in:
– General Law
– Fiscal Control Act of 1957
– County Financial Management System of
1981
– Private Acts approved by the legislature
SPECIAL REVENUE
ACCOUNT
• Under the control of the Recorder/Trustee
• Budget for drug fund approved annually
• Except confidential expenditures, MUST
follow city/county purchasing guidelines
• Confidential Expenditures MUST follow
Comptroller’s guidelines
FINES
FORFEITED CASH
AND THE PROCEEDS
FROM THE SALE
OF FORFEITED PROPERTY
50%
DONATIONS
SPECIAL REVENUE
ACCOUNT
(City Recorder/Trustee)
APPROPRIATIONS
Separate
Checking
Account
50%
GENERAL FUND
CONFIDENTIAL
ACCOUNT
SPECIAL REVENUE
ACCOUNT
(City Recorder/Trustee)
Expenditures
Must Follow
Purchasing Guidelines
CONFIDENTIAL
ACCOUNT
Expenditures
Must Follow
Comptroller’s
Guidelines
CONFIDENTIAL ACCOUNT
CONFIDENTIAL
EXPENDITURES
• Confidential Expenditures
– Payments made to an informant
– Payments made to an undercover agent
– Money spent to actually purchase drugs as
part of an investigation
– Gasoline or maintenance for undercover
vehicle or informant’s vehicle
• Must follow Comptroller’s Guidelines
DOCUMENTATION
• Documentation for every exchange of
funds
• Custodian:
– Exchanges from or to Recorder/Trustee
– Exchanges to or from agents
• Agents:
– Every exchange of funds, and
– Receipt from informant, witnessed
Audit Logs
(Balance Ledger)
• Custodian:
– “Custodian’s Activity Log for Confidential
Transactions” Balance sheet
• Agent:
– “Agent’s Activity Log for all Confidential
Funds” Balance Sheet
– “Summary Informant Log”, for each informant
SPECIAL REVENUE FUND
City Recorder/Trustee
R-1
CONFIDENTIAL ACCOUNT
Chief/Sheriff/Custodian
A-2
CASH
Agent
A-4
Transaction
A-4
A-5
Informant
SPECIAL REVENUE FUND
City Recorder/Trustee
R-1
CONFIDENTIAL ACCOUNT
Chief/Sheriff/Custodian
A-2
A-1
A-7
R-2
R-3
CASH
Agent
A-4
Transaction
A-4
A-5
Informant
SPECIAL REVENUE FUND
City Recorder/Trustee
R-1
CONFIDENTIAL ACCOUNT
Chief/Sheriff/Custodian
A-2
A-3
A-6
A-1
A-7
R-2
R-3
CASH
Agent
A-4
Transaction
A-4
A-5
Informant
SPECIAL REVENUE FUND
City Recorder/Trustee
R-1
CONFIDENTIAL ACCOUNT
Chief/Sheriff/Custodian
A-1
A-7
Custodian’s Activity
Log for Confidential
Funds
Confidential Fund Monthly
Reconciliation Report
R-2
R-3
Quarterly Report
SPECIAL REVENUE FUND
City Recorder/Trustee
R-1
CONFIDENTIAL ACCOUNT
Chief/Sheriff/Custodian
A-2
A-3
A-6
A-1
A-7
R-2
R-3
CASH
Agent
A-4
Transaction
A-4
A-5
Informant
Managing informants?
Best Practices
Managing Informants
• Criminal history for all informants?
Update?
• Command approval?
• Documentation of informant activity
history?
• Correlate informant activity to arrests and
convictions?
Informant Information
• Remember, an auditor can demand to see
the informant file to verify that an informant
does exist
• Unlikely to happen in an annual audit, but
more likely during an investigative audit
Proper Disposal of Property
and Evidence
Authority
• State law authorizes the comptroller’s
office to promulgate rules for municipal
and county processes
• Maintain the public’s confidence
• The law requires counties and
municipalities to meet compliance
standards.
• Not restricted to financial matters, includes
processes
Property and Evidence
• Secure property and evidence storage
facility
• Procedures for property and evidence:
Institutional Control
– Evidence that you follow the procedures
– Officers store stuff in personal locker?
• Annual inventory
Priority Items
•
•
•
•
Cash
Firearms
Drugs
Vehicles
Cash
• Unless cash is required as evidence, do
not keep cash.
• Check with the local DA to determine
the need to maintain cash as evidence
• Deposit in a bank
• If needed, the city can issue a check to
return money
• Absolutely, do not keep in drawer or
locker
Cash
• All funds received by cities and counties
must be deposited in the bank within 3
days
– TCA 6-56-111(a) cities
– TCA 5-8-207 counties
• When cash is needed as evidence officers
should consult with appropriate
prosecuting authorities
Interest Bearing Account?
• Do you deposit the seized money in an
interest bearing account?
• If you lose the forfeiture hearing, you may
owe the earned interest to the defendant
• You may be required to provide an IRS
1099 form
• Multiple deposits: Interest for which
deposit?
Firearms
• TCA 39-17-1317 requires firearms that
were held as evidence in case or
otherwise used or possessed illegally to
be sold, exchanged or retained for LE
purposes
• Pursuant to court order
• Action must take place between 60 and
180 days after the last legal proceeding
involving the weapon
• File an affidavit of return, if sold
Sale of Firearms
• Public Auction within six months of the
court order
• Advertised in local newspaper for at least
three editions and not less than 30 days
before the sale
• Proceeds to the general fund to be used
solely for law enforcement purposes
• Sell
Firearms
– Should contract with a licensed firearms dealer
• Retain
• You can exchange for ammo, firearms or
body armor
FIREARMS
Firearm
If Unsafe
Unsafe
Firearms
Obtain
Court Order
DESTROY
Destroy
Affidavit of
Return
FIREARMS
Firearm
To Retain
Petition the
Court for Title
To Retain
Firearms
FIREARMS
Firearm
To Retain
To Exchange
Firearms
Petition the
Court for Title
To Exchange
Firearms
Ammo
Body Armor
Petition the
Court for Order
FIREARMS
Firearm
Advertise in Local
Newspaper
To Sell
Petition
the Court
for Order
Buyer,
Description of
Firearm,
Selling Price
Public Sale
Affidavit of
Return
May use
Firearms
Dealer
FIREARMS
Firearm
If Unsafe
DESTROY,
With court order.
Return to court
To Retain
To Sell
Petition the
Court for Title
Petition the
Court for
Order
Advertise,
Then Sell
To Exchange
Firearms
Ammo
Body Armor
Petition the
Court for Order
Affidavit of
Return
DRUGS
• TCA 53-11-451requires the clerk of the
court to inventory and dispose of drugs
and paraphernalia at least annually after
final adjudication
• If the case is disposed of and the drugs
are still in the possession of the police
department, the duty rests with the law
enforcement agency
Drugs
• Drugs are contraband and are to be
destroyed after adjudication
• Never keep more than one year beyond
adjudication
• Keep secure
Vehicles
– In-house security
– Vendor lot
• Maintain adequate inventory records
• Ensure that proceeds go where they are
supposed to
• Do you have a daily storage fee for your
lot?
DUI/DRL VEHICLES
• Second or subsequent offense of DUI
• Driving on Revoked Drivers License when
license was revoked for DUI
• ALL proceeds from sale go to state,
except for direct expenses associated with
seizing, towing, storing, etc.
Vehicles
Seized for
Drugs *
Vehicles
Seized for
DUI or DRL
Administrative
Process
Drug
Fund
General
Fund
* Any property seized under drug control
act
After
Expenses
STATE
Rape,
Robbery,
Felony Theft,
Human
Trafficking
Arson, “John
Wayne” Law,
Alcohol,
Tobacco
DUI/DRL
DUI
Seizures
Drug
Vehicles
Drug
Judicial
Forfeiture
Process
Administrative
Hearing
Process
Administrative
Hearing
Process
Administrative
Hearing
Process
General
Fund
Drug
Fund
General
Fund
General
Fund
Excess to State
Conveyance Seizures
• Judicial Process (40-33101)
–
–
–
–
Sexual offenses
Robbery
Felony Theft
Human Trafficking
• Requires Conviction
• Judge orders forfeiture
Title 40, Chapter 33, Part 1
• Administrative Process
– Drugs
• Proceeds to Drug Fund
–
–
–
–
DUI/DRL
Arson
“John Wayne” law
Bootleg Moonshine
• Proceeds split with ABC
– Untaxed tobacco
Title 40, Chapter, 33, Part 2
Can You Use the Cars?
• Vehicles seized for drug violations OR for
DUI?DRL and forfeited to the city/county
may be used for DRUG ENFORCEMENT
purposes
• Must be sold after five years.
Lost or Abandoned Property
• Different for Police departments than
sheriff’s departments
• Sheriff’s departments follow TCA 8-8-501
• Police Departments are subject to Uniform
Disposition of Unclaimed Property Act
Uniform Disposition of
Unclaimed Property Act
• All lost or abandoned property technically
belongs to the state of Tennessee.
• They don’t want most of it (particularly
bicycles).
• Inventory and send a letter to the state
treasurers office. They will generally
respond with a letter giving you the
property.
TCA 8-8-501 (Sheriffs)
• Dispose of all abandoned, stolen and/or
recovered or worthless property which
remain unclaimed
• By confiscation, abandonment or by being
stolen and recovered
• Due diligence to return to rightful owner
• Wait six months from date of acquisition.
Beer and Whiskey
• Unopened beer and whiskey to be turned
over to the state Alcohol Beverage
Commission 57-9-115
• The state is to return a percentage of the
proceeds from the public auction of the
beverages to the local government.
• After adjudication, dispose of open
containers
• Class C misdemeanor
Evidence
• Rules of Evidence, Rule 901
– Chain of custody maintained and documented
• Aside from general rules of evidence we
expect as police officers:
– TCA 9-2-102 requires cities and counties to
follow rules of the Comptroller’s office
– Internal Control and Compliance Manual
– Governmental Accounting, Auditing, and
Financial Reporting
RESOURCES
Municipal Technical Advisory Service
www.mtas.tennessee.edu
Rex Barton
(865) 974-0411
[email protected]
Ralph Cross
(615) 532-4946
[email protected]
Division of Municipal Audit
(615) 401-7871
RESOURCES
County Technical Assistance Service
www.ctas.tennessee.edu
Terry Hazard
(615) 532-3555
[email protected]
Division of County Audit
(615) 401-7841